Godrej Appliances, the consumer goods division of the Godrej group, on Wednesday indicated that it is planning to enter new segments of commercial refrigeration, high-end television and food processing. The company is on the look out for technical partners.
“Currently, we are conducting a consumer research to study the feasibility of entering into new segments such as commercial refrigeration, high-end television and food processing. In another six months, we should be able to come up with concrete plans,” Godrej Appliances chief operating officer, George Menezes, said. He was interacting with media persons on the occasion of the launch of the company’s energy efficient new range of refrigerator “˜Edge’, price of which range from Rs. 8,500 to Rs. 14,500. The company was looking to double its turnover every alternate year as it continues to grow on the existing product lines.
The company is expected to close 2007-08 with a topline of Rs. 1,400 crore and is eying to reach Rs. 2,800 crore by 2009-10.
On the diversification plans, Mr. Menezes said the company would set up greenfield plants for the new product categories. He would not name the possible partners for technical collaboration saying that it was premature to do so.
On investments, he said, “It is too early to say how much we could be investing but certainly new plants would be required for the new products.”
The company had already invested Rs. 130 crore to increase capacity for producing refrigerator at its two plants at Shirwal (near Pune) and Mohali.
With this, the refrigerator production capacity has gone up to 1.5 million units a year from one million units while compressor production has gone up to two million from 1.5 million.
The refrigerator, air-conditioning and washing machine segments were expected to drive the growth equally, he said, adding that the company was seeking to bolster its share in the 38-lakh units fridge segment by five per cent to 27 per cent.